Question
Suppose a company sells a new 1,000 face value bond to investors in the primary market. The annual coupon rate is 5%. The yield to
Suppose a company sells a new 1,000 face value bond to investors in the primary market. The annual coupon rate is 5%. The yield to maturity is 5%. Coupon interest payments are made annually. What is the price investors are paying for this new bond?
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1000
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something higher than 1000
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something lower than 1000
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any of the above could be true
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Introductory Econometrics For Finance
Authors: Chris Brooks
4th Edition
110843682X, 9781108436823
